Section 56 exempts investors operating and employees employed in the zones from the labour relations act, 1985 no. Export processing zones authority, benjamin william mkapa sez,mabibo, external p. Bangladesh export processing zones authority annual report 20112012 part01 download annual report 20112012 part01. Free zones are intended to foster economic activity and employment that could occur elsewhere.
Enhancing the contribution of export processing zones to the sustainable development goals ii key messages this exploratory report suggests that changes taking place in the global market mean that export processing zones epzs, and special economic zones sezs more generally, can be restructured. Some of the first free trade zones allowed imports and exports free from custom formalities so that goods could be reexported quickly. The introduction of sezs in zimbabwe is not a novel concept as government once came up with export processing zones epzs from 19962006 that were mainly export oriented. To date, government has designated a number of sites as special economic zones.
The introduction of sezs in zimbabwe is not a novel concept as government once came up with export processing zones epzs from 19962006 that were mainly. The agricultural sector is the largest employer of labour 26% in the formal economy and contributes around 21. The export processing zones concept has failed to make any meaningful contribution to the economy despite the array of incentives that have been accorded to companies operating within the zones, a. Export processing zones epzs are economic enclaves within which manufacturing for export occurs under virtual free trade conditions. Sezs however are not an entirely new concept as government once established export promotion zones epzs in the 1990s with more or less the same objectives. Revenue inflows like many other developing countries, zimbabwe offers a number of tax and customs incentives in the form of tax holidays, reduced tax rates, and accelerated depreciation. These epzs are mostly established in developing countries. Abstract this note focuses on export processing zones as potential, useful tools in export promotion, and, outlines the general features, and objectives of these zones, highlighting country experiences, and. Export processing zones epzs in the southern african. This thesis attempts to understand the relevance of export processing zones epzs and special economic zones sezs in creating a more diverse economy and generating employment.
An act to amend the export processing zones act, to make provisions for the establishment of the export processing zones authority, composition of the export processing zones council and related matters. Zimbabwean companies also participate in trade fairs organized by other countries for example zambia, tanzania and libya. This also included establishing the existence of sezs in zimbabwe. According to the world bank, an export processing zone is an. Export processing zones epzs in their traditional form fencedin industrial parks where exportoriented investors enjoy free port status emerged in the period 195075 and first became widely adopted between 197585. An export processing zone epz is a specific type of ftz usually set up in developing countries by their governments to promote industrial and commercial exports. Interpretation part ii establishment of export processing zones appraisal committee 3. Currently there are more than 3,500 epzs in countries. Zones hidzs and the border economic cooperation zone becz, are usually part of a city that allow a broad range of duty free goods and activities. The first phase of the method is a labour force survey on employment. The manifest objectives of epzs are to attract foreign capital investment and mobilise investment for capital formation for rapid industrialisation, to create employment opportunities for the countrys manpower, to induce transfer of technology, and to earn foreign. Just after liberation all the medium and big size industries were. The establishment of the export processing zones epzs in 1995 aimed at promoting foreign direct investments fdi which would then translate into an increase in manufactured exports.
Export processing zones epzs in their traditional form fenced in industrial parks where export oriented investors enjoy free port status emerged in the period 195075 and first became widely adopted between 197585. Lastly, it suffices to mention in passing that countries like zimbabwe, kenya, sri lanka, nige ria, and. Export processing zone expansion in an african country. To promote exports, government adopted the strategy of promoting export processing zones epzs through the epz of 1995. This is held annually in bulawayo as a showcase for zimbabwes products. They are fencedin industrial estates of significant size which, like ftzs, lie outside the host countrys customs territory.
Export processing zones are used extensively throughout the world. Epzs in zimbabwe were established countrywide and not con. Enacted by the parliament ofthe united republic oftallzlj1ia. The following are the incentives offered to qualifying. Labour conditions in export processing zones uio duo. Given our emphasis on export processing zones, this is not really a disadvantage, since with the exception of one other urban area antsirabe these have been instituted only in the capital. These zones are in line with the ilo definition of an enterprise zone. Jan 16, 2015 sezs however are not an entirely new concept as government once established export promotion zones epzs in the 1990s with more or less the same objectives.
Establishment or declaration of export processing zones. Special economic zones and regional integration in africa. The epz programme also included several export incentives to promote. In addition to providing the benefits of a ftz, these zones offer other incentives such as exemptions from certain taxes and business regulations. Over the past few years, the idea of establishing export processing zones epzs has found support among.
Export processing zones, employment, wages, labour standards, madagascar. In china, for example, the unctad figures include seven zones, of which. Declaration of export processing zones the minister may, on the recommendations of the committee, for the purpose of attracting, promoting or increasing the manufacture of export products or with the object of promoting economic development generally, by notice published. Africa, industrial policy and export processing zones. This first chapter introduces relevant background for the topic and discusses the resource question and methodology in more detail.
An export processing zone is one of many export promotion tools, including bonded warehouses and temporary admission schemes. Zimbabwe, namibia, malawi and mozambique have already. An assessment of the impact of export processing zones and. Implications for trade and industrialization policies by united nations. Introduction according to the international labour organization, total employment in exporting processing zones epzs worldwide amounted to million employees in 2002, excluding china ilo, 2003. Export processing zones in subsaharan africa kenya and lesotho.
Export processing zones, free trade zones and other forms of special economic zones are demarcated geographical areas within a countrys national boundaries where the regulation of firms activity. Conference on trade and development and a great selection of related books, art and collectibles available now at. Export diversification and role of export processing zones. Export processing zones, free trade zones and other forms of special economic zones are demarcated geographical areas within a countrys national boundaries where the regulation of firms activity and the dedicated policies are differentiated from those applied to firms outside the zone. Export processing zones authority phone and map of address. It was repealed with effect from 1st january 2007 by the zimbabwe investment. Trade liberalisation in zimbabwe, resulted in an increase in export growth from 2. These earlier forms of export processing zones were established as a. Epzs are particularly numerous in asia and along the usmexico border. An assessment of the impact of export processing zones and an. Epz has incessantly accelerated the economic growth of the country by ensuring a flourishing export production.
Type of free trade zone ftz, set up generally in developing countries by their governments to promote industrial and commercial exports. The 1970s then saw the epzs boom, mostly in developing countries of latin america, the caribbean, asia and to a lesser extent africa ilo 1998. A sample of 17 countries with epzs shows huge variations in levels of investment attracted by epzs, and includes five countries where the epz investment stock is. Export processing zones epz are spatially delimited areas in which manufacturers produce goods that are largely aimed for export markets. An act to provide for the establishment of the zimbabwe export processing zone authority and to provide for the functions thereof. Export processing zones, free trade zones and other forms of special economic zones are demarcated geographical areas within a countrys national boundaries where the regulation of firms.
The rationality of the special economic zones act on labour rights. How to make special economic zones work the zimbabwe. The international labor organization estimates that worldwide there are over 2,700 epzs employing more than 63 million individuals appendix a. Based on a paper presented at an ilo sponsored workshop on epzs with the southern african trade union coordination council, satucc in harare 2830 march 1996. Export processing zones and the quest for sustainable. Recent research documents these violations in the dominican republic. In 1995, the export processing zones act chapter 14.
Export processing zone epz embassy of the republic of. Export processing zones epzs first appeared in the late 1950s and early 1960s as a means to promote industrialisation in developing countries. The government of the republic of namibia adopted a policy for the establishment of an export processing zone epz regime to serve as a tax haven for exportoriented manufacturing enterprises in the country, in exchange for technology transfer, capital inflow, skills development and job creation. I no person shall don on entering a unless he is the holder of a licence granted by the agentinto, residing, g conduct any business or undertake a retail trade in an export etc. Many developing countries have established epzs in hopes of reaping economic gains through employment, foreign exchange. The impacts of special economic zones evans school of. Establishment of the export processing zones appraisal committee. Sep 15, 2017 to date, government has designated a number of sites as special economic zones. Export processing free zones in developing countries. Export diversification and role of export processing zones epz in bangladesh prior to liberation of bangladesh all the major industries of our country belonged to west pakistani entrepreneurs. The zimbabwe economy is dominated by the agricultural sector, where in good rainfall seasons the sector outperformances other sectors of the economy cso, 2000. Epzs offer industrial facilities and other incentives.
Export processing zone epz special industrial park developed in response to international market demand for cheaper goods. Attempts in africa to use export processing zones epz as an instrument for economic development, with the exception of mauritius, have been less successful then in countries in east asia, central america, and the caribbean basin. Another strategy which was adopted in 1994 to boost zimbabwes export potential was the establishment of export processing zones epzs. The introduction of sezs in zimbabwe is not a novel concept as government once came up with export processing zones epzs from 19962006 that were mainly exportoriented. Port congestion adds to exporters woes indias exports shrank almost 35% in march, the biggest contraction in almost a decade, reflecting the global slowdown made worse by the covid19 pandemic.
Geneva ilo news as global competition for jobs and foreign investment intensifies, export processing zones epzs are proliferating worldwide, growing from just a handful a few decades ago to over 850 today, according to a new report 1 published by the international labour office. Export processing zones in subsaharan africa kenya and. The global trade and investment context from which. Export processing zones in india was set up by the government of india with the aim to initiate infrastructural development and tax holidays in various industrial sectors in the country. This paper examines the literature on export processing and free. An exportprocessing zone epz is a specific type of ftz usually set up in developing countries by their governments to promote industrial and commercial exports. This note focuses on export processing zones as potential, useful tools in export promotion, and, outlines the general features, and objectives of these zones, highlighting country experiences, and offering policy recommendations for establishing them.
The number seems to include only export processing zones which would appear to correspond to free ports or zone areas with the processing of goods. This paper discusses why export processing zones epzs provide little prospect. The notion of the epz may have originated from free trade zones established in major ports such as hong kong, gibraltar, and singapore during the nineteenth century. In china, for example, the unctad figures include seven zones, of which five are the most open special economic zones. Establishes the zimbabwe export processing zone authority, the zimbabwe export processing zone board, and provides for the establishment of export processing zones and regulations thereto. They are larger than export processing zones and in some countries are considered towncities on their own. Todays export processing zones have evolved from their original definition as an industrial estate, usually a fencedin area of 10300 hectares, that specializes in manufacturing for export. Objects and purposes of establishment of export processing zones. The export processing zones act, 2002 arrangement of sections section title part i preliminary provisions 1. The purpose of this article is to inform the readership on sezs and what role fdi can play in zimbabwes development trajectory as well as to flag out lessons from other countries. The bounded zones logistics parks, the export processing zones and industrial parks4 and investment zones 5 of. Karachi export processing zone kepz, landhi industrial area extension, mehran highway, karachi75150 pakistan 9221 992080394144. Hence special economic zones were introduced in 2016 as an act to accelerate economic growth in zimbabwe.
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